1. 12th
accountancy paper by Kishor sir 9898343373
General instructions:
1. All questions are compulsory.
2. All parts of the questions should be attempted at one place only.
3. 10 minutes time has been allotted for reading question paper.
4. Brackets on right side shows marks.
SECTION-A
1. Amit, Raj and Ganesha are partners in a firm having no partnership agreement. They contributed
Rs. 4, 00,000, 5, 00,000 and 7, 00,000 as a capital respectively. Raj and Ganesha want that their profit
should be distributed in the ratio of capital contribution but Amit does not agree to this. Is Amit correct?
Give reason? (1)
2. Kavan and Pawan are partners. They admitted Sawan as 1/5th
share in the firm. In which ratio old
partners will sacrifice their share in favour of new partner? (1)
3. Identify any two matters that need adjustment at the time of admission of a new partner. (1)
4. When is partners’ executor account prepared? (1)
5. What is public company? (1)
6. What journal entry you will pass at the time of forfeiture of shares originally issued at discount? (1)
7. How debentures are different than shares? Give any two points of difference. (1)
SECTION-B
8. K, S and P are partners sharing profits in the ratio of 3:2:1. Their capitals are 2, 40,000, 1, 80,000 and
1, 20,000 respectively. For the year 201-12, interest credited to them @ 6% p.a instead of 5% p.a. record
adjustment entry. (3)
9. Sunita Ltd. purchased its own debentures of Rs. 100 each of the face value of Rs. 40,000 from the open
market for cancellation at Rs. 95. Record necessary journal entries. (3)
10. Z+ Ltd. Issued 4000 debentures of Rs. 100 each on January 01, 2012 at a discount of 10% redeemable
at a premium of 10%. Give journal entries relating to the issue of debentures and debenture interest for
the period ending December 31, 2012 assuming that interest was paid half yearly on June 30 and
December 31 and tax deducted at source is 10%. Z+ Ltd follows calendar year as accounting year.
(3)
11. Kiran and David are the partners in a firm supplying school uniform. Their profit sharing ratio is 4:3.
Their capital as on 1st
April, 2011 is Rs. 1,00,000 and 50,000 respectively. On this date Kiran advised
David to start supply of low cost uniform to students who belong to poor family and who has been
admitted in private school as per the provisions of Right To Education Act 2009. David agreed and
requested to admit in a firm his friend Nayana who is unemployed physically handicapped; however
Nayana will not contribute any capital. Kiran agreed to it. The firm was in need of capital, so Kiran
persuaded his rich friend Jay who hailed from Kashmir to be a partner.
a. Jay contributed Cash Rs. 5,00,000 and Maruti van of Rs. 4,00,000 as his capital.
b. The new profit sharing ratio is 3:2:1:1
1. Identify any four values which motivated them to form the new partnership firm.
(2)
2. Calculate sacrificing ratio and pass journal entry for capital brought by new partner (2)
12. A, B and C are partners sharing profit and loss in 5:4:1 ratio. Following is the Balance sheet of their firm
as on 31-3-2012.
BALANCE SHEET AS ON 31-3-2012

2. Liabilities Amount
Rs.
Assets Amount
Rs.
CAPITAL ACCOUNTS
A : 45,000
B : 30,000
C : 30,000
Profit and loss account
Bills payable
Creditors
TOTAL
1,05,000
15,000
8,000
19,000
--------------
1,47,,000
Land and building
Machinery
Investments
Stocks
Debtors : 14,000
- B.D.R : 2,000
Cash balance
Bills receivables
TOTAL
35,000
30,000
16,000
15,000
12,000
23,000
16,000
-------------
1,47,000
On the above date C retires at the following conditions.
1. Land and buildings is to be appreciated by 10 %.
2. Goodwill is valued at Rs. 50,000 which is to be disclosed by full amount in books.
3. The investments were sold for Rs. 20,000.
4. Provide 10 % Bad debts reserve on debtors.
5. The dues of Jagdamba are to be paid after keeping Rs. 20,000 as her loan.
Pass necessary journal entries after retirement of C. (4)
13. Manish Ltd. Purchased the running business from Aisha Traders for a sum of Rs. 15,00,000 payable Rs.
30,000 by cheque and for the balance issued equity share having face value Rs. 100 at 20% premium. The
assets and the liabilities consisted of the following.
Building 4,00,000
Plant and machinery 6,00,000
Stock 5,00,000
Sundry debtors 3,00,000
Sundry creditors 2,00,000
Record necessary journal entries in the books of Manish Ltd. (4)
14. Man Mohan Ltd. Has authorized capital of Rs. 20, 00,000 divided in to equity shares of Rs. 10 each.
The company offered 1, 00,000 equity shares for public subscription. The issue was fully subscribed. The
amount payable on application was Rs. 2 per share and payable Rs. 4 each on allotment and first and final
call. The share holder holding 200 shares failed to pay the allotment money, subsequently his shares were
forfeited. The company did not make the final call. Show how the share capital will be shown in the
company’s Balance sheet. Also prepare notes to the a/c for the same. (4)
SECTION-C
15. Rakhi and Shiksha are partners in a firm, with capitals of Rs. 2, 00,000 and Rs. 3, 00,000 respectively.
The profit of the firm for the year ended 2011-12 is 32, 500. As per the agreement, they share the profits in
their capital ratio, after allowing salary of Rs. 5,000 per month to Shiksha and interest on partner’s capital
at the rate of 10% p.a. during the year Rakhi withdrew Rs. 8,000 and Shiksha Rs. 10,000 for their personal
purpose. You are required to prepare Profit and Loss Appropriation A/c and partner’s capital A/cs. (6)
16. A, B and C were partners in a firm sharing profits in the ratio of 5:3:2. On 31st
March, 2012, their
Balance sheet was as under:
LIABILITIES AMOUNT
Rs.
ASSETS AMOUNT
Rs.

3. Creditors
Reserves
Capital
A: 30,000
B: 25,000
C: 15,000
7,000
10,000
70,000
Buildings
Machinery
Stock
Patents
Cash
20,000
30,000
10,000
6,000
21,000
TOTAL 87,000 TOTAL 87,000
C died on 1st
Oct. 2012. It was agreed between his executor and the remaining partners that
I. Goodwill will be valued at two year’s purchase of the average profits of the previous five years
profits, which were Rs.15,000, Rs.13,000, Rs.12,000, Rs.15,000, and Rs. 20,000 respectively for
the year 2007-08 to 2011-12.
II. Patents be valued at Rs. 8,000; machinery Rs. 28,000; buildings at Rs. 30,000.
III. Profits for the year 2012-13 be taken as having accused the same late as the previous year.
IV. Interest on capital be provided at 10%.
V. A sum of Rs. 7750 was paid to his executor immediately.
Prepare C’s capital account and his executors account at the time of death. (6)
SECTION-D
17. HMT Ltd. Co offered 20,000 shares to the public at a premium of Rs. 2 per share payable as under.
On application: Rs. 4 per share
On allotment (including premium) Rs. 5 per share
On call Rs. 3 per share.
Applications were received for 30,000 shares and allotment was made on pro rata to 24,000
applicants, the remaining applications money was refunded with regret letter. Money over paid on
application was applied towards sum due on allotment.
Jayesh Patel a holder of 800 shares did not pay allotment money and Vipul vyas holder of 1000
shares did not pay call money so their shares were forfeited.
Company decided to reissue all shares of Jayesh to one economically weak employee of the
company at maximum possible discount.
a. Give necessary journal entries and
b. Also indicate any two values followed by a company offering shares to an employee. (8)
OR
17. Ajanta Ltd. Co offered 10,000 equity shares having face value Rs.100 to public at a premium of Rs.
20 per share payable as under.
On application: Rs. 10 per share
On allotment Rs. 40 per share (including premium)
On first and final call Balance.
Over payments on application were to be applied towards sum due on allotment & first and final
call. Where no allotment was made, money was to be refunded in full. The issue was oversubscribed to
the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 2000 shares and applicants
for 3,000 shares were sent letter of regret. Shares were allotted in full to remaining applicants. All the
money due was duly received.
(a) Give journal entries to record the above transactions in the books of the company. (6)
(b) Which value has been affected by rejecting the applications of applicants for 3,000 shares? Suggest a
better alternative for the same. (2)
18. Bhim, Jaggu and Chutki are partners sharing profits and losses in the proportion of 5:3:2. On March
31st
, 2012 their Balance sheet was as under.
LIABILITIES AMOUNT
Rs.
ASSETS AMOUNT
Rs.

4. Bills payable
Creditors
General reserves
Capital
A: 36,000
B: 44,000
C: 52,000
22,000
64,000
14,000
1,32,000
Machinery
Stock
Goodwill
Bills receivable
Debtors
Cash
94,000
44,000
20,000
14,000
42,000
18,000
TOTAL 2,32,,000 TOTAL 2,32,000
They decided to admit D in to the partnership on the following terms:
I. Machinery is to be depreciated by 15%
II. Stock is to be evaluated at Rs. 4,000.
III. Goodwill is to be valued at Rs. 26,000.
IV. Outstanding rent is Rs. 1,900.
V. D is to bring Rs. 32,000 towards his capital for 1/6th
share and the partners to readjust their
capitals accounts on the basis of their profit sharing ratio. Adjustment of capital to be made in
cash.
Prepare revaluation account, partner’s capital account, cash account and Balance sheet of
the new firm. (8)
OR
18. Following is the Balance sheet of A and B on March 31st
, 2012.
LIABILITIES AMOUNT
Rs.
ASSETS AMOUNT
Rs.
Creditors
Mrs. A’s loan
Mrs. B’s loan
Investment fluctuation fund
Reserve fund
Capitals:
A: 20,000
B: 20,000
76,000
10,000
20,000
2,000
20,000
40,000
Cash at bank
Stock
Investments
Debtors 40,000
Less: BDR 4,000
Buildings
Goodwill
17,000
10,000
20,000
36,000
70,000
15,000
TOTAL 1,68,000 TOTAL 1,68,000
The firm was dissolved on that date. The following was agreed transactions took place.
I. A promised to pay Mrs. A’s loan and took away stock for Rs. 8,000
II. B took away half of the investments at 10% less.
III. Debtors realized for Rs. 38,000 and creditors were paid off at Rs. 380 less.
IV. Building realized for Rs. 1, 42,000.
V. The remaining investments were sold at Rs. 9,000.
VI. Realization expenses amounted to Rs.2,000 was paid by A.
VII. Rs. 600 realized for old computer not recorded in the books.
Prepare necessary accounts on dissolution of the firm.
19.

5. 80-64=16